We work to mitigate our impact on the planet’s finite resources by aligning with and exceeding government, industry and societal expectations for environmental stewardship.

Our Code of Conduct dictates that we do what’s right for our employees, suppliers, customers and people who use our technology.

Sustainability factors

Through our biennial assessment of sustainability issues, we classified two tiers of priorities: Tier 1 performance factors where we seek to accelerate progress by setting targets for 2017 and 2020; and Tier 2 factors that we will
advance through continued management and disclosure, without setting new SMP goals. We define Business Integrity through these factors:

Tier 1

ENERGY AND CARBON MANAGEMENT

Managing energy use and GHG emissions associated with company operations, including efforts to promote energy and water efficiency, use renewable energy and offset emissions.

Tier 2

REMEDIATION

Efforts to alleviate impacts on the environment and/or to resolve environmental liabilities derived from legacy operations or acquisitions.

HAZARDOUS MATERIALS AND CHEMICAL MANAGEMENT

Efforts to manage and reduce risk from hazardous materials and chemical substances throughout our operations and across our value chain, consistent with internationally recognized standards.

Case study

ORLANDO SOLAR CARPORT

We continually aim to positively impact our operational budget and contribute to our goal to be environmentally responsible. In 2017 we partnered with Advanced Green Technologies on a 2MW, 145,379-square-foot carport featuring 6,688 solar panels, producing
3.41 million kilowatt hours (kWh) of electricity and shelter to 592 vehicles.

Highlights

We implemented more than 70 energy efficiency and carbon reduction projects in 2017 including HVAC, lighting, building control systems, building envelope, renewable energy, and retro-commissioning.

55

million kWh annual energy reduction

$4m

recurring annual cost avoidance

10+

HVAC related projects

≈40

lighting projects

≈10

building management systems projects

950+

energy meters

Operations Goals and Progress1

1 Reflects performance from November 2016 through October 2017. In 2017, we recalculated our 2010 baseline to include RMS Sikorsky and exclude a former Information Systems & Global Solutions (IS&GS) business segment.

2 2017 carbon and energy data is reported for our largest active 81 facilities in the United States, United Kingdom, Poland, Canada, Australia and Mexico.

3 Reflects Scope 1 and 2 emissions plus an estimate for leased facility space where we do not collect actual data. Reflects unbundled RECs, an off-site power purchase agreement and on-site renewable generation.

4 2017 water data is reported for our largest 56 facilities in the United States and Poland.

Science-based methodologies

Our voluntary carbon emissions targets and results outperform a science-based threshold to stabilize atmospheric carbon emissions. Using the Center for Sustainable Organizations’ Context-Based Carbon Metric methodology, we produce less
carbon emissions than would be allocated based on our contribution to gross domestic product (GDP).

The 1.0 threshold results from the ratio of the actual emissions to allocated emissions, based on a company’s contribution to GDP.

* To account for Lockheed Martin’s acquisition of Sikorsky in November 2015, both the gross margins and estimated carbon data (for 2010-2017) used to obtain the context-based score include Sikorsky. To account for Lockheed Martin’s divestiture
of parts of the Information Systems & Global Solutions business segment in August 2016, gross margins (2014-2016) were restated, and the estimated carbon data (2010-2017) excludes emissions from the divested parts of the business segment.